The judgment establishes the principle that individuals violating import and export restrictions and engaging in smuggling are subject to penalties and confiscation under the Customs Act.

1. The petitioner. & Bolivian National said to be of German Dutch origin and resident in Vienna, was a passenger from Colombo to Genoa on the Italian passenger vessel M. V. Australia which called at Cochin (a regular port of call on its homeward voyages for the purpose of taking on board passengers bound for Europe) on 5-12-1958. With him was his wife and, as part of his baggage, a Volks-wagon motor car also booked from Colombo to Genoa. Three or four hours after the vessel was moored in the inland waters of the Cochin Port, the Chief Customs Inspector who, on information that the petitioner was engaged in smuggling gold into India and taking out Indian currency had a watch kept over the petitioner's movements but found that the petitioner was making no attempt to land or get into touch with anyone on shore, boarded the vessel with a few of his subordinate officers as he was entitled to under S.171 of the Sea Customs Act, 1878. He asked the petitioner whether he had any Indian or foreign currency or gold in his possession and thereupon the petitioner made the oral declaration that he had only $ 2105 in American currency, $ 60 worth of travellers' cheques and Rs. 250/- in Indian currency. The petitioner and his wife and their cabin were searched (under S.169 & 171 of the Act), but nothing was found in excess of what the petitioner had declared. The Chief Inspector thereupon decided to search the car of the petitioner (under S.171), but since this would have meant the detention of the vessel beyond the scheduled time for sailing, the Master of the vessel "agreed to off-load the car and to leave the petitioner at Cochin for enabling him to be present during the search of his car." Accordingly, the petitioner and his car were taken off the vessel (whether by force as alleged by the petitioner or by persuasion as stated by the Customs authorities does not very much matter), but, before doing so, the Chief Customs Inspector obtained from the petitioner a written declaration to the effect that he had U. S. A. $1605 and Indian Rs. 250/- in his possession. (He had given $ 500 to his wife who was allowed to continue her voyage). It was late by then, and the petitioner was lodged for the night in the Malabar Hotel while a proper guard was kept over the car. The next day the car was searched by the Customs officers with the aid of a mechanic in the presence of the petitioner and one Mr. Gnehm, a German knowing representative of the local agents of M. V. Australia, who acted as an interpreter since the petitioner could speak very little English. Concealed in a secret, specially constructed chamber in the central channel of the chasis of the car were found 37 bundles of Indian currency notes of the value of Rs. 322,000 and U.S.A. currency notes of the value of $ 44,900. These were seized under a mahazarnama (Ext. D1) attested by the petitioner, by Mr. Gnehm, and by the mechanic, Mr. Gnehm further certifying that he had translated its contents to the petitioner and the petitioner appeared satisfied with the correctness thereof.

2. On 11-12-1958, the Chief Inspector questioned the petitioner with the help of Mr. Gnehm and recorded from him the signed statement (Ext. D2) in which he admitted that the car was his, but disowned the currency notes found in it and further suggested that the secret chamber must have been constructed and the notes concealed therein by one Alexander Bauchner whose acquaintance he had made at his Colombo hotel and who had borrowed his car on the 30th of November and returned it the following day saying that he would probably meet the petitioner at Genoa where he was going by air and take a lift in the car from Genoa to Vienna. (In this statement also Mr. Gnehm has certified that it was read out to the petitioner in German and was admitted by him to be correct.) On 15-12-1958 the petitioner was served with a show cause notice (Ext. P1 dated 13-12-1958) by which the Customs Collector asked him to show cause w